EUR/USD Eyes 1.3780 As Candlesticks Suggest Bears In Control
- EUR/USD Technical Strategy: Shorts Preferred
- Long upper wick on daily candle highlights significant selling pressure
- Bearish Engulfing pattern on four hour chart foreshadowed intraday dip
EUR/USDhas plunged after failing to claim the psychologically-significant 1.4000 handle in recent trading. The intraday volatility has failed to yield a classic candlestick reversal pattern. However, the length of the upper wick and body of the daily candle suggests the bears are in control of prices. This opens up further declines towards the next noteworthy level of support at 1.3780.
Daily Chart - Created Using FXCM Marketscope 2.0
A Bearish Engulfing pattern near 1.3950 offered an intraday signal that declines were on the way for the Euro. While the Asian session has yielded a couple of Doji formations which hints at some hesitation from the bears, they are not enough to suggest a bounce at this stage.
EUR/USD: Bearish Engulfing Pattern Sparks Intraday Dip
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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